$$a = b; in PHP means "take the value of $a, and set the variable whose name is that value to equal b".
In other words:
$foo = "bar";
$$foo = "baz";
echo $bar; // outputs 'baz'
But yeah, take a look at the PHP symbol reference.
As for call by value/reference - the primary difference between the two is whether or not you're able to modify the original items that were used to call the function. See:
function increment_value($y) {
    $y++;
    echo $y;
}
function increment_reference(&$y) {
    $y++;
    echo $y;
}
$x = 1;
increment_value($x); // prints '2'
echo $x; // prints '1'
increment_reference($x); // prints '2'
echo $x; // prints '2'
Notice how the value of $x isn't changed by increment_value(), but is changed by increment_reference().
As demonstrated here, whether call-by-value or call-by-reference is used depends on the definition of the function being called; the default when declaring your own functions is call-by-value (but you can specify call-by-reference via the & sigil).